On Monday, 9th September, FONSIS had the honour of participating in a roundtable organised by the Global Green Growth Institute (GGGI) Senegal, focusing on green financing. The event brought together key stakeholders from various sectors, aiming to enhance understanding of climate-related projects, align national priorities on climate issues, and promote initiatives within the private and banking sectors. Furthermore, the roundtable sought to foster strategic partnerships to increase climate investments, building on Senegal’s growing experience in this field.

During the event, FONSIS shared its commitment to supporting the mobilisation of funding for climate projects in Senegal, in collaboration with international investors, the private sector, and development finance institutions (DFIs). The successful implementation of projects such as the Kael, Kahone, and Ten Merina solar parks exemplifies FONSIS’s dedication to the growth of renewable energy in Senegal. These solar parks were developed in partnership with ENGIE and Meridiam and backed by international financial institutions, including Proparco, the International Finance Corporation (IFC), and the European Investment Bank (EIB).

In addition to its work in renewable energy, FONSIS has played a crucial role in advancing Dakar’s Bus Rapid Transit (BRT) project, in collaboration with Meridiam. This project aims to power Dakar’s public transport network using renewable energy, with the ultimate goal of transitioning the entire BRT system to solar power. This initiative is aligned with Senegal’s broader climate strategy, which seeks to reduce the country’s carbon footprint while improving urban mobility.

Looking towards the future, FONSIS announced the upcoming launch of the Renewable Energy and Energy Efficiency Fund (REEF), a $100 million fund designed to accelerate the development of renewable energy and energy efficiency projects. This initiative, developed in collaboration with global partners such as GGGI and the African Climate Foundation (ACF), aims to provide the financial support necessary to foster innovation and sustainable growth in Senegal’s energy sector.

However, FONSIS also acknowledged the significant challenges associated with financing large-scale climate-friendly infrastructure projects. These challenges include high upfront capital requirements, political and regulatory barriers, as well as limitations related to infrastructure and grid capacity. FONSIS emphasised the importance of addressing these challenges through various mechanisms, including the mobilisation of concessional financing, advocacy for policies that support climate investment, and the exploration of innovative financial instruments such as green bonds.

Through its active participation in GGGI’s Green Financing Roundtable, FONSIS reinforced its ongoing commitment to driving sustainable economic growth and supporting Senegal’s transition towards a greener and more resilient economy.